Let’s start with what we know and work backwards. Homes priced $200,00 or less are flying off the shelves with multiple offers. Homes up to $250,000 are as well in some neighborhoods, but not all. This assumes the home is in good condition and priced correctly. So, you might wonder why we’re asking the question, are changes brewing in Southwest Florida real estate market?
Buyers are still buying; however, we’re noticing they’re price sensitive now. Prices have gone up so much perhaps it’s testing the limits of what buyers can or will pay. Sellers are counter-offering offers and buyers aren’t just accepting that. They are negotiating back and forth until both are happy. Some buyers are walking from counter-offers. We’ve seen this over the years and it appears it’s no longer a seller’s market across the board.
The numbers from June seem to bear that out as well. The median time to contract jumped 7 days in June from May’s numbers, and 9 days from last year. It’s taking longer to get contracts on houses. It’ll be interesting to see July’s numbers in a few weeks.
Median time to sale also jumped to 117 days. That’s a 11.4% increase from last year. New listings are up 5.8% and new pendings were down 1.6% from last year. Could these be leading indicators for sales in months to come?
So, what’s the takeaway here? Sellers need to take a good hard look at their price and make sure they’re competitive. If your home has been on the market awhile, it may be time to re-evaluate where you stand. New listings could have come on the market and become instantly more attractive than your home, or other sellers may have reduced their price. Both events can affect you. Sometimes as little as $2,000 in some sub-markets can be the difference between selling and sitting.
We are in a price sensitive market, primarily because prices have risen and stretched home buyers thin. They simply can’t purchase as much home as they could have a year ago. We warned buyers this would happen. And we’re warning sellers not to get too greedy now.
Prices are good. Buyers are buying. We don’t have a runaway market where the seller gets to dictate all the terms. Buyers and sellers are on even ground right now, and price matters. Sellers, you’re not in competition with the buyer. You’re in competition with all the other sellers out there competing for your buyer.
Buyers, same thing. You’re not in competition with the seller. You’re in competition with all the other buyers out there for the best properties. The best valued homes always sell fast. You don’t want to be late to the table and eating scraps when you could have had the best. Be prepared. Get your financing in order so you can jump when that property hits the market.
To take advantage of opportunities in this market we’d suggest sitting down with us and going over your objectives. As a buyer, we can show you the best homes and eliminate the rest. Wasting time on the junk takes away time looking at the good stuff. That can be the difference between success and failure. Let an Ellis Team professional work with you and save you time. We have some other tips for you as well that we’ll save for when we meet.
Sellers should have the same sit-down with us. We’ll educate you on the market, look at your competition, and show you how we market better than anybody. This can be the difference between selling and sitting on the market.
Feel free to search homes at www.LeeCountyOnline.com Our database comes directly from the MLS and is always up to date, unlike some of these other sites with bad or outdated data.
You can always call us at 239-489-4042 We’d love to help you buy or sell your next home in paradise!
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